Hurdles to forex allocation for the import of essential goods have been removed and as of Sunday an extra $1.5 billion was budgeted for such imports, news outlets in Tehran said Monday.
The latest disbursement was thanks to close coordination between the Plan and Budget Organization, Central Bank of Iran and the Agriculture Ministry along with the needed guarantees, ebinews.com reported.
Given that some shipments are on their way to the country, it is expected that the latest funding should have a positive impact on the supply of goods in the chaotic market saddled with near permanent rising prices, shortages and price gouging.
Officials have said that the fresh currency allocation is for soybean meal, barley, corn and poultry feed, and the Agriculture Ministry will be mandated for the fair distribution of the goods.
Also known as necessity goods, essential goods, like rice, vegetable oil, tea, and sugar are products consumers buy come what may and regardless of income levels. Other goods are wheat, barley, livestock and poultry feed for food companies.
Economists have routinely censured the role CBI has been playing in directly involving itself in earmarking foreign currency for imports instead of concentrating on its critical banking responsibilities. They say the role and performance of the regulator reminds them of the early years of the 1979 Islamic Revolution and the 1980-88 Iran-Iraq war when the country was engulfed in unpresented difficult conditions.
In December, Reuters reported that dozens of merchant ships with grain and sugar were stuck near Iranian ports after weeks of delays as payment snags disrupted the flow of goods, according to trade sources and shipping data.
Food is exempt from US sanctions on Iran over its nuclear program, but the impact of the economic embargo on Iran's financial system has created a web of erratic payment arrangements with exporters.
The latest payment issues have led to ships being unable to unload cargo with at least 40 bulk carriers stuck outside major Iranian ports, namely Bandar Imam Khomeini and Bandar Abbas, ship tracking data on Refinitiv showed.
Iran's Ports and Maritime Organisation said in November that 37 ships carrying 2.2 million tons of goods were unable to unload due to "documentation and hard currency payment issues" at Bandar Imam Khomeini in the sourth.
Iran’s foreign trade, excluding crude oil export, reached 106.79 million tons worth $78.84 billion in the first nine months of the fiscal year (March 21-Dec. 21).
Imports stood at 26.84 million tons worth $42.6 billion, down 10.79% in volume but 15.15% higher in value.
Top exporters to Iran during the period were the UAE with 9.46 million tons worth $12.94 billion, China 3.21 million tons worth $11.2 billion, Turkey 2.66 million tons worth $4.45 billion and India 1.47 million tons worth $2.15 billion.
Import of essential goods in fiscal 2021-22 included corn, unrefined vegetable oil, pharmaceuticals and medical equipment, wheat, oilseeds, soymeal, barley, rice, sugar, heavy vehicle tires, fertilizers, pesticide and insecticide, veterinarian medicine, red meat, chicken, eggs, pulses and tea.
